Central African Republic Becomes Second Nation To Adopt Bitcoin As Legal Tender

April 24, 2022 6:08 pm

The Central African Republic is the first African nation that has passed a law that will allow Bitcoin to become legal tender which marks a new milestone for crypto history.

The country follows the steps of El Salvador which was the first nation in the world to adopt Bitcoin as legal tender and it seems possible that these two countries are just the first two of many nations who will soon do the same.

The national assembly of the Central African Republic states that its reasons for doing so involves strengthening the economy of the nation via the benefits of crypto.

The law was initially submitted by the country’s minister of digital economy which has worked on establishing a regulatory framework that promotes the growth of crypto.

Forbes.mc reports:

The application of the legal-tender implies the acceptance of cryptocurrencies as a legal means of payment established through specific legislation.

With cryptocurrencies, the Central African Republic is moving towards a new, avant-garde path of development and economic performance, a dynamic field which is popular among investors around the world and ever-present as full-fledged assets in the portfolios of the world’s largest financial players.

This initiative will completely transform the CAF’s digital infrastructure by applying the blockchain technological innovation necessary for the project’s implementation. Investing in cryptocurrencies benefits for millions of users, which even the opposition understood.

Initially critical of the project, the parliamentary groups Mouvement Cœurs Unis (MCU) and Mouvement National des Indépendants (MOUNI) voted in favor to support the nation’s best interest, to benefit from prosperity and stability.

The country is hoping that this move to completely integrate crypto within the economy will allow the nation to adopt the economic benefits that have so far been observed by regions that have tested the use of crypto.

Many investors are also increasingly looking for alternative assets in order to diversify their portfolios due to concerns about inflation and government instability in some regions in the world.

With crypto being the fastest growing asset class, many are naturally inclined to include it within their portfolios which makes to become more and more mainstream.

The move to adopt Bitcoin as legal tender has been critized by multiple regulatory agencies around the world such as the IMF, but it seems that the industry is inevitable given that it is already a $2 trillion market that continues to grow despite some governments being against it.

Watcher.guru reports:

The adoption of bitcoin as legal tender will transform the country’s infrastructure, which will allow the nation to implement blockchain technology in various sectors.

The global crypto adoption and the growing popularity have made governments and educated countries realize the true potential of cryptocurrencies and their underlying technology.

Following El Salvador, recently an autonomous region in Portugal, Madeira and a special economic zone in Honduras have approved bitcoin as a legal tender, providing a safer and regulated framework for its people.

With two regions in the world now having adopted Bitcoin as legal tender, it may only be a matter time before other nations join in as well and potentially consider other digital assets as legal tender.

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